Likely in response to last month’s announcement by the Trump administration that all flavoured vaping products may be banned, Juul has recently announced that it will now also stop selling its flavoured pods (with the exception of mint and menthol) on its website, effective immediately.
A broad reorganization plan is being conducted by Juul’s new CEO, with planned cuts across several departments.
“We continue to review our policies and practices in advance of FDA’s flavor guidance and have not made any final decisions,” Juul spokesman Austin Finan said in a statement. “We are refraining from lobbying the administration on its draft flavor guidance and will fully support and comply with the final policy when effective.”
The e-cigarette manufacturer is also reducing its marketing budget and investing heavily in ways to limit underage vaping. As a result of all this, and a broad reorganization plan conducted by the firm’s new CEO K.C. Crosthwaite, Juul Labs is planning to cut about 500 jobs by the end of the year. These cuts are expected to be made across several departments, and all employees are expected to receive a severance, and any prorated bonuses which they were eligible for.
Reducing 10 to 15% of its workforce
The San Francisco-based firm currently employs approximately 4,100 people, so these cuts are thought to represent about 10 to 15% of its workforce. “As the vapor category undergoes a necessary reset, this reorganization will help Juul Labs focus on reducing underage use, investing in scientific research, and creating new technologies while earning a license to operate in the U.S. and around the world,” said Crosthwaite in a statement.
Read Further: CNBC